UK crypto tax guide 2026/27: HMRC rules and worked examples
Quick answer: UK crypto disposals can attract Capital Gains Tax; earnings and some rewards can attract Income Tax. For 2026/27 the CGT annual exempt amount is £3,000, shared across eligible gains, with main rates of 18% and 24%. Work in pounds, apply matching rules and report when required.
This is the main reference page for UK crypto tax in the 2026/27 tax year (6 April 2026 to 5 April 2027). It links every specialist guide on this site and explains the rules HMRC applies to disposals, income and reporting — with numeric examples you can follow.
Who this guide is for
This reference covers UK-resident individuals. CGT is UK-wide, but Scottish Income Tax bands differ for relevant income. Companies, trusts, residence changes and substantial DeFi arrangements can require separate advice. If you are filing 2025/26, its online deadline is 31 January 2027; activity in 2026/27 is generally filed by 31 January 2028.
When you owe Capital Gains Tax
A disposal happens when you sell crypto for pounds, swap one token for another, use crypto to pay for goods or services, or gift tokens (except to a spouse/civil partner). You calculate gain as sterling proceeds minus allowable costs (fees, pooled acquisition cost). Losses can offset gains in the same year or be carried forward.
Match disposals in the right order
UK token matching · a sequence, not a choice
Apply the rules in order for the same token type and capacity. A purchase already matched to a disposal does not also enter the pool.
Read the diagram as text
- 01. Same day. Match eligible purchases on the disposal date.
- 02. Next 30 days. Then match eligible purchases in the following 30 days.
- 03. Section 104 pool. Use pooled allowable cost for the remaining units.
Source: HMRC token pooling guidance
Worked example: sale above the annual allowance
Anna bought 0.5 bitcoin for £15,000 in March 2024. In November 2026 she sold 0.5 bitcoin for £22,000. Fees: £50. Gain = £22,000 − £15,000 − £50 = £6,950. After the £3,000 annual exempt amount, taxable gain = £3,950. At 18% basic rate CGT, tax due ≈ £711 (rates depend on her total income band).
Worked example — same-day rule
Ben has an existing bitcoin pool with an average cost of £20,000. On the same day he sells 1 BTC for £45,000 and buys 1 BTC for £44,500. Assuming no other same-day transactions or fees, the acquisition matches the disposal, giving a £500 gain. The matched acquisition does not also enter the Section 104 pool; the pre-existing pool remains unchanged.
For the matching sequence and a partial repurchase, follow the Section 104 and 30-day worked example.
Worked example — 30-day bed-and-breakfast
Claire sells 10 ethereum on 15 March 2027 for £25,000 (pool cost £12,000) to use the CGT allowance before 5 April. On 2 April 2027 she rebuys 10 ethereum for £24,000. Within 30 days, the rebuy matches the March sale. Allowable cost = £24,000, not £12,000. Gain ≈ £1,000 minus fees — not the £13,000 she might have expected from pooling alone.
Worked example — DeFi token swap
Dan swaps 1,000 USDC for 0.4 ethereum via a decentralised exchange. This is a disposal of USDC and acquisition of ethereum. Sterling values at transaction time (use HMRC reasonable exchange rate or reputable price feed) determine proceeds and new pool cost. Gas fees in ETH are part of the cost of the transaction. Keep transaction hashes and block timestamps.
When a dollar-pegged token is involved, check how stablecoin values change in pounds before reconciling the swap.
Income Tax — when crypto is not CGT
Trading frequently with organisation may be treated as trading income. Mining and staking rewards are usually Income Tax when received (then CGT on later disposal). Employment paid in crypto: Income Tax and National Insurance via PAYE where operated; otherwise Self Assessment. The £1,000 trading allowance may apply to casual income — see HMRC manuals.
Self Assessment and SA108
Register by 5 October after the tax year if you need to file. Online deadline 31 January 2028 for 2026/27. SA108 includes dedicated cryptoasset boxes from 2024/25 — declare disposals, gains and losses separately from other assets. Our SA108 guide lists each box.
Before preparing the return, use the reporting situation checker to review the questions that affect filing.
Record-keeping checklist
For every transaction: date, type, tokens, amounts, sterling value, fees, wallet/exchange, counterparty. Export CSVs from exchanges (see our Coinbase, Kraken, Revolut and Binance guides). Back up DeFi wallet exports. Keep records at least 5 years after the 31 January filing deadline.
Turn these records into a practical work plan with the crypto tax preparation checklist.
CARF and HMRC matching
From January 2026 UK crypto service providers collect extra identity data. First CARF reports to HMRC cover calendar year 2026, due by May 2027. CARF helps HMRC cross-check your Self Assessment — undeclared gains remain your liability. Use voluntary disclosure if you have prior-year gaps.
Tax software — UK pooling matters
US-style FIFO default can overstate UK gains. Choose software that applies Section 104 pooling and 30-day rules, or adjust manually. Compare nine tools on our software matrix page. Free tiers suit small histories; paid exports are typical for SA108 filing.
After importing your transactions, check the software report against your evidence before relying on its totals.
Key dates for 2026/27
6 April 2026: tax year starts. 5 October 2027: register for Self Assessment if newly liable. 31 October 2027: paper return deadline. 31 January 2028: online filing and payment deadline. Set calendar reminders — late filing penalties start at £100.
Frequently asked questions
Do I pay tax if I only bought and still hold? +
Buying and holding is not a disposal. Tax may apply when you sell, swap, spend or gift. Income Tax may apply when you receive staking or mining rewards.
Is transferring between my own wallets taxable? +
Moving crypto between wallets you own is not a disposal. Keep records to prove ownership chain.
What if I lost money overall? +
Report losses on SA108. They can offset gains in the same tax year or be carried forward to future years.
Does HMRC know about my crypto automatically? +
From 2027 HMRC receives CARF reports from UK providers about 2026 activity. You must still report accurately regardless.